In Keynes's liquidity preference framework, individuals are assumed to hold their wealth in two forms:
A) real assets and financial assets.
B) stocks and bonds.
C) money and bonds.
D) money and gold.
C
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Make-or-buy decisions are decisions that concern the components to be used in a production process.
a. true b. false
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Portfolio approach is considered an extension of the monetary approach because it
A) includes the ability to accumulate foreign assets beyond currencies. B) allows the central bank to use more than just bonds to maintain the exchange rate. C) includes the international impacts from one country onto another. D) relates the domestic money stock to the foreign money stock.
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